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If you’re looking for a DSCR rental loan, we have you covered. West Forest Capital is a leading DSCR rental loan provider, financing real estate investments up to $3 million.
A DSCR rental loan (also known as a Debt Service Coverage Ratio) is a type of long-term real estate financing, often extending up to 30 years. Unlike traditional loans, it does not rely heavily on personal income or credit during underwriting. Instead, approval is based on the property’s value and the rental income it produces. These loans are designed to move quickly, with closings often completed in as little as two to three weeks.
As an asset-based lender specializing in rental loans, we focus on providing financing based on real estate assets that generate net operating income (NOI) greater than the property’s debt service. Whether you are acquiring your first rental property or expanding an established portfolio, our team can support your goals.
Contact us today to secure a DSCR rental loan designed for your investment property.
The minimum DSCR ratio is typically around 1.1x. To calculate it, the borrower’s net operating income is divided by the annual mortgage debt. Net operating income is the rental income minus expenses like taxes and insurance, while the annual mortgage debt includes principal and interest payments.
A DSCR loan works by measuring property cash flow against debt obligations. Lenders assess whether the income the property generates is enough to cover operating expenses and the mortgage loan. Most lenders look for a DSCR of 1.2 or higher, giving a margin of safety for real estate investors.
No, DSCR rental loans can be used for various types of investment properties, including single-family homes, multi-family units, condominiums, and in some cases, commercial real estate. The key factor is that the property generates reliable cash flow.
These loans offer longer terms, competitive rates, and underwriting based on the property’s income rather than your personal credit or tax returns. This makes them very attractive for real estate investors who want flexibility in financing multiple investment properties.
Interest rates for DSCR rental loans are often competitive with conventional loan products. Rates can vary depending on the property type, loan amount, and the strength of the borrower’s net operating income.
Yes, DSCR rental loans can sometimes be used for acquisitions, renovations, and improvements that increase property cash flow. This makes them appealing to investors who want to upgrade units and boost rental income.
Yes, we often extend DSCR financing to both seasoned investors and newcomers. Because the focus is on the property’s ability to service its debt obligations, even first-time investors can qualify if the numbers work.
Documentation usually includes rent rolls, property income statements, and credit reports. At West Forest Capital, we sometimes also request personal financial statements, though the emphasis remains on the property’s ability to cover its annual mortgage debt.
Yes, DSCR rental loans can be used to refinance existing loans on rental properties. This helps investors secure better terms, consolidate debt, or pull equity to reinvest in other opportunities.
Unlike a hard money loan, which is short-term and typically higher-cost, DSCR loans are designed for longer-term financing with more favorable rates. They give real estate investors stability while still basing approval on property cash flow.
Prepayment terms can vary. In some cases, we do offer loans with no prepayment penalty.
West Forest Capital
West Forest Capital 237
East 79th Street New York,
NY 10075
West Forest Capital 123
Grove Ave Suite 222, Cedarhurst,
NY 11516
West Forest Capital 615 W
Johnson Ave Suite 202,
Cheshire, CT 06410
West Forest Capital 11
Summer Pl, Newark,
NJ 07104,
Call: 212-537-5833